Tax breaks for tourism spending in secondary provinces from Jan 1 to Dec 31, 2018 will be discussed in the Thai cabinet today. It is intended to distribute income to these provinces and make the recovery more broad-based.
People who spend on accommodation, food and drink at these secondary locations next year can use the receipts to claim a tax deduction of up to 15,000 baht, said Prasong Poontaneat, director-general of the Revenue Department. Travelers use receipts instead of full tax invoices to claim the deduction, as most tourism operators in secondary provinces make an income of less than 1.8 million baht a year. The tax-collecting agency requires all operators earning at least 1.8 million baht to register for the value-added tax system.
Mr. Prasong said that the Tourism and Sports Ministry will decide that which provinces will enjoy the tax incentive. Rural economies are being pushed towards broad-based growth. Despite solid economic growth of 3.8% up till September this year and healthy exports, rural areas are lagging behind.
The tourism tax deduction scheme covers secondary provinces that accommodate fewer than 4 million tourists per year, said Tourism and Sports Minister Weerasak Kowsurat. While major markets like Bangkok, Phuket, Chiang Mai, Chon Buri and Songkhla cannot participate in the tax break scheme, there are more than 61 eligible provinces, including Lampang, Loei, Trat, Nan, Chaiyaphum, Suphan Buri, Samut Sakhon, Chanthaburi, Buri Ram and Chumphon, Mr. Weerasak said.
